A Preconceived Formula for Sovietization: The Communist Takeover of North Korea |
| |
| Authors: | Dae Sook Suh |
| |
| Institution: | 1. School of Political Science &2. Economics , Waseda University , Tokyo, Japan hiroya@waseda.jp;4. Department of International Political Science &5. Economics , Nishogakusha University , Tokyo, Japan |
| |
| Abstract: | Abstract This article examines an endogeneity issue within the Optimum Currency Area (OCA) theory. According to the cost-benefit analysis, we found that there are the upper and the lower bounds in the degree of monetary integration for a monetary union to be created. We also found that a country may secede from the monetary union, depending on its degree of integration. A country may also secede when production specialization is facilitated with monetary integration within a framework of the “OCA line”. We also consider the endogeneity of the “OCA Index”, and applied our analysis to the optimum number of world currencies. |
| |
| Keywords: | Monetary Union OCA endogeneity |
|
|
